Significant Grades & Widths Continue At El Gallo

 

TORONTO, ON - US Gold Corporation reported further encouraging core drilling results from five separate areas within its El Gallo Project in Sinaloa State, Mexico. Top three best holes (of the twenty-three assayed) since the last update: 18.9 ounces of silver per ton (opt) over 49.5 ft (feet) (647.0 grams per tonne (gpt) over 15.1 meters (m)), 11.8 opt silver over 59.1 ft (404.0 gpt silver over 18.0 m) and 6.7 opt silver over 59.1 ft (228.3 gpt silver over 18.0 m).

"These results continue to demonstrate that El Gallo has significant growth potential. In order to determine the ultimate size of this discovery US Gold is planning to complete 330,000 ft (100,000 m) of core drilling this year, making it one of the largest exploration programs in Mexico. We remain on schedule to release an initial resource estimate during the second quarter of 2010; and, a preliminary economic analysis by year-end. In addition, US Gold's regional drilling program in areas surrounding El Gallo has started on some intriguing targets," said Rob McEwen, Chairman and CEO.

The most important new core hole drilled in the Central Area is GAX098 (Fig. 1). It successfully extended the mineralization up-dip from hole GAX033 (7.3 opt silver over 27.1 ft (249.8 gpt over 8.3 m)) by approximately 86 ft (26 m) and laterally from hole GAX010 (31.6 opt silver over 104.0 ft (1,082.4 gpt over 31.7 m) by 69 ft (21 m). GAX098 encountered a significant intersection of high-grade that returned 18.9 opt silver over 49.5 ft (647.0 gpt over 15.1 m), further expanding the previously defined limits of mineralization. The mineralization is close to surface, starts at a vertical depth of approximately 80 ft (25 m) and remains open down-dip.

The companys address is 99 George St., 3rd Floor, Toronto, ON  M5A 2N4, (647) 258-0395, fax: (647) 258-0408, email: [email protected].